Consolidate. Strengthen. Grow

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Ranbaxy Laboratories Limited Chairmans Message

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Ranbaxy Laboratories Limited Annual Report 2011

Consolidate. Strengthen. Grow.

2011 has been a year of challenge and stellar achievements. In the face of adversity, Ranbaxy has shown resilience and capitalised on opportunities.

In November 2011, we received approval from the US Food & Drug Administration (FDA) to launch Atorvastatin in the US, the generic version of the worlds largest selling cholesterol reducing drug. This is a giant leap towards bringing trusted, high quality, affordable medicines, within easy reach of all.

Ranbaxy also took the significant step forward in resolving pending matters with the US FDA. While restoring normalcy, this brings greater certainty and clarity to our business in the US.

Over the last three years, we have made significant investments in improving quality systems and processes in R&D and manufacturing operations.

Ranbaxy also crossed the landmark figure of US $ 2 Bn, in sales, in 2011, becoming the first pharmaceutical company of Indian origin, to do so.

Yet another significant achievement in the year has been the approval in India for our new Anti-Malaria Drug. We are the first pharmaceutical company from India to have developed a New Drug. This places Ranbaxy in the illustrious league of innovator pharmaceutical companies, in service of mankind.

Ranbaxy is now ready to move with confidence into a new era of vigorous growth and expansion. The way forward will be to Consolidate, Strengthen and Grow business with a firm commitment to the defined mission of Enriching lives globally, with quality and affordable pharmaceuticals.

contentsChairmans Message ...................................... 4

CEO & Managing Directors Message ........... 7

Global Pharmaceuticals Business Overview ....................................... 14

Global Consumer Healthcare ....................... 24

Global Hybrid Business ................................ 26

Therapy Focus.............................................. 28

Atorvastatin-Significant Global Launch ........ 30

Manufacturing .............................................. 32

Research & Development ............................ 35

Global Quality ............................................... 38

Global Human Resources ............................ 40

Social Responsibility and Environment, Health & Safety ............................................. 42 Corporate Governance................................. 48

CEO and CFO Certificate ............................. 59

Board of Directors ........................................ 60

Report of the Directors ................................. 61

Ten Years at a Glance .................................. 76

Auditors Report ............................................ 77

Financial Statements of Ranbaxy

Standalone ................................................... 80

Consolidated Indian GAAP ........................ 125

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Ranbaxy Laboratories Limited Chairmans Message

mission valuesEnriching lives globally, with quality and affordable pharmaceuticals

Achievingcustomersatisfactionisfundamentaltoourbusiness.

Provideproductsandservicesofthehighestquality.

Practicedignityandequityinrelationshipsandprovideopportunities for our people to realise their full potential.

Ensureprofitablegrowthandenhancewealthoftheshareholders.

Fostermutuallybeneficialrelationswithallourbusinesspartners.

Manageouroperationswithhighconcernforsafety and environment.

Bearesponsiblecorporatecitizen.

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at a glance

Over a period of five decades, Ranbaxy has transformed itself from a small

pharmaceutical company from India to a multinational corporation that has presence in 43 countries and world-class manufacturing facilities in 8 countries. We cover 23 of the Top 25 pharma markets of the world providing a wide range of quality, affordable medicines to customers in over 125 countries. Our multicultural workforce comprising more than 14,000 people from over 50 nationalities gives us the strength to make quality healthcare accessible to all, contributing towards a healthier, happier world.

key performance highlights

47%EMERGING MARKETS contribution to global sales.

151ABBREVIATED NEW DRUG APPLICATIONS (ANDAs) approved across different global markets.

$2 BnSALES turnover achieved.First pharmaceutical company of Indian origin to cross this landmark.

42INSPECTIONS across 18 manufacturing facilities by 18 International Regulatory Agencies.

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global footprint

Research SYNRIAMTM, a breakthrough molecule devel-oped by Ranbaxy to treat Malaria. Ranbaxy is the first pharmaceutical company from India to successfully develop a New Drug.

Regulatory REGULATORY issues resolved in the US opening up several growth possibilities for the company in the region.

Launch ATORVASTATIN, a generic version of the worlds largest drug, launched by Ranbaxy in the US, helping millions of Americans manage healthy cholesterol levels.

Hybrid Business ModelSYNERGIES forged in more than 15 geographies so far across the pharmaceutical value chain.

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Ranbaxy Laboratories Limited Annual Report 2011

Chairmans Message

Dear Valued Shareholders,

The year 2011 was momentous for Ranbaxy as we crossed many significant milestones and surpassed challenges, emerging as a much stronger company.

I mentioned last year that our topmost priority was to resolve the Regulatory issues in the US. In 2011, Ranbaxy was able to put these behind by committing to the Consent Decree. It is our remediation program to further strengthen procedures and policies. We will continue to cooperate with the US FDA to re-establish the public trust in the company.

Over the last three years since the Application Integrity Policy (AIP) was invoked, we have implemented significant changes and improvements in our systems and processes to comply with good manufacturing practices.

Quality is key in all processes and is the determining factor that kindles the belief patients have in our medicines and ultimately our business. Ranbaxys new Management Team and Daiichi Sankyo are committed to the utmost levels of professionalism and integrity. We will ensure that all Ranbaxy facilities continue to meet the high standards that are expected from a global pharmaceutical company.

During the year, we made significant progress with global sales of over US $ 2 Bn, becoming the first pharmaceutical company of Indian origin to cross this landmark.

I always refer to Ranbaxy as an Indian diamond. It is truly global in stature and indisputably one of the first multinationals to emerge from India with an aim to make

With a new Mission, Enriching lives globally, with quality and affordable pharmaceuticals, your company is ready for its next big leap. I can see the new vigour, enthusiasm and passion in all of us and feel that Ranbaxy is poised for growth.

Challenges are opportunities.

Dr. Tsutomu UneChairman

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Ranbaxy Laboratories Limited Chairmans Message

high quality medicines accessible and affordable to people around the world.

The last 50 years have been remarkable for the company. Now we embark on a new chapter and 2011 sets the perfect stage to lay the foundation of a new Ranbaxy.

I believe there cannot be anything more satisfying for a company than

successfully developed a New Drug. All efforts will be made to make this new molecule accessible to the world.

We launched a generic version of the worlds largest drug, Atorvastatin, in the US, helping millions of Americans manage healthy cholesterol levels. It is an effective, affordable and accessible alternative to the branded Lipitor.

areas that lack basic healthcare. These objectives are aligned with the UN Millennium Development Goals.

Strengthening our corporate governance standards, we introduced a Whistle Blower Policy - an extension of Ranbaxys existing Code of Conduct that aims to promote self-governance at all levels. In order to reinforce

Board of Directors (L to R): Takashi Shoda, Percy K. Shroff, Arun Sawhney, Dr. Tsutomu Une, Dr. Anthony H. Wild, Rajesh V. Shah, Akihiro Watanabe

making a contribution to the cause of humanity. For Ranbaxy, that moment came alive in 2011, with the approval of its first New Drug (New Chemical Entity for the treatment of Malaria). We are all very proud that Ranbaxy has become the first pharmaceutical company from India to successfully develop a New Drug. This has been truly an extraordinary accomplishment and I applaud all the scientists who have worked incessantly over 8 years and with great diligence to make this a reality.

I am also very happy that this places India in the League of Nations to have

The resolution with the US authorities frees us considerably, allowing us to concentrate on achieving the full potential of our Hybrid Business Model, that showed progress during the year. Our synergies now extend beyond business to social initiatives. To improve access to medical services, Ranbaxy and Daiichi Sankyo have started mobile healthcare clinics in India. The aim is to reduce child mortality and improve maternal health. These mobile healthcare clinics will provide greater access to medical and primary healthcare and save many lives in

compliance to the Global Quality Policy and Pharmacovigilance requirements of the company, the Code of Conduct has been augmente